When a Minimum-Wage Law Forces the Wage to Remain Above

question 20

Multiple Choice

When a minimum-wage law forces the wage to remain above the equilibrium level,it

• A)raises both the quantity of labor supplied and the quantity of labor demanded compared to the equilibrium level.
• B)raises the quantity of labor supplied and reduces the quantity of labor demanded compared to the equilibrium level.
• C)reduces the quantity of labor supplied and raises the quantity of labor demanded compared to the equilibrium level.
• D)reduces both the quantity of labor supplied and the quantity of labor demanded compared to the equilibrium level.

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Definitions:

Group Size

Refers to the number of individuals constituting a group, which can influence the group's dynamics, interactions, and effectiveness.

Collective Effort Model

A theory suggesting that individuals are motivated to contribute to a group's goals based on the expected outcomes and perceived value of their contribution towards those goals.

Unchallenging Tasks

Tasks that are easy to complete and do not require significant effort, skill, or creativity.

Social Loafing

The situation in which persons contribute less energy towards realizing a goal when they are part of a group than when they are on their own.